Swisquote Group, who states that they are the leading provider of trading services’, have recently provided a further offering. This time they are seeking to foray further into the crypto space by by providing an “actively managed bitcoin certificate” (powered by its machine learning algorithm) to it’s consumers. The exchange-traded product (ETP) is to be listed on the largest stock exchange in Switzerland, the Six Swiss Exchange.
The Swissquote is already in the process of offering a place to buy and sell bitcoin, they offer a service where one can buy and sell BTC in USD and EUR.
They state that they have low transaction fees per volume category of trade and that they provide investors with the ability to buy and sell in a simple, secure and fast manner. Their offering does not include a wallet, only a way to buy and sell the cryptocurrency.
The new service they will be offering (the Bitcoin ETP), will allow consumers to protect themselves against the volatility of Bitcoin, a hurdle faced by many institutional investors. The new financial instrument will allow for these investors to enter the market and invest, being exposed to the upside while complying with the regulations. At the current moment, regulations prevent these investors from directly investing in the currency.
This new product, that the group is calling a certificate, aims to increase the growth of capital through a hands on and active management approach. The approach will be comprised of the transfer of holdings between cash and Bitcoin.
SwissQuote group bitcoin certificate features
The firm believes that all should be able to gain and derive benefit from the “boom in digital currencies” and that is why they are deploying their dynamically managed Bitcoin certificate.
They state that the differences are in the reduction of volatility. They are utilizing the new technology and processes of algorithms and machine learning to develop a quantitatively based approach to their investing. The system is supposed to anticipate the bitcoin price trends and move in accordance with those trends. If the price of bitcoin is swinging up, they will over-weight it as necessary, if its trending downwards, it will be under-weighted. A significant portion of their portfolio will be allocated toward Bitcoin.
They state “with the likelihood of a downturn rising, the cash position is increased to up to 40%, thereby reducing volatility. If prices are expected to rise, up to 100% of the certificate is invested in Bitcoin.”
Swissquote claim another benefit, is that they will be the first one on the market with the first listed crypto-strategy and will be able to protect investors and provide with them with a better way to limit their exposure to risk through investing in the certificate.
The last significant feature would be the simple and secure access by consumers to their Bitcoins. The Group promises that investors do not have to worry about managing their public or private access keys, their electronic wallet.They also don’t have to worry about hacking.
Need to Knows
Time Frame :The certificate has a 3 Year Term
Denomination :Bitcoin priced in USD as the underlying asset.
Initial Trading Period:November 23, 2017
Closing Trading Period: November 11, 2020